Steadfast Group, Australia's largest general insurance broker network, has agreed to a take-private that values the company at $5.5bn (A$7.7bn) and will split it between three US backers.

The Sydney-based group confirmed the binding agreement in an announcement to the exchange on Friday, and its board unanimously recommended that shareholders back the scheme.

Under the scheme of arrangement, growth equity firm Dragoneer and private equity group KKR will jointly own Steadfast's retail brokerage business, while specialty insurance distributor Amwins Group takes its underwriting agency operations.

The structure lets each buyer acquire the part of Steadfast that fits its existing platform, rather than holding the whole company together.